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SNC-Lavalin falls on reports former exec charged with money laundering

SNC-Lavalin shares tumbled in Monday trading following reports that the company’s former head of construction has been formally charged in relation to at least $139 million in payments in North Africa.

MONTREAL—SNC-Lavalin shares tumbled in Monday trading following reports that the company’s former head of construction has been formally charged in relation to at least $139 million in payments in North Africa.

The Montreal-based company’s shares fell by 4.5 per cent in early trading, but were down 2.1 per cent, or 91 cents at $40.63 at the close of trading on the Toronto Stock Exchange.

Swiss authorities wouldn’t confirm the report, saying details of its criminal investigation are not made public before the trial phase.

Ben Aissa has been held on suspicion of corrupting a public official, fraud and money laundering tied to his dealings in North Africa.

An internal review by the engineering and construction giant led to it finding $56 million of payments to unidentified foreign agents.

The RTS report says the allegations against Ben Aissa tie him to at least $139 million in payments. The report says authorities have tracked money moving from SNC to Swiss bank accounts registered to companies in the British Virgin Islands.

The report further cites sources saying some of the money then ended up in accounts that Ben Aissa controlled.

Ben Aissa was in charge of business dealings in his native Tunisia as well as Libya, where the company won lucrative contracts with the former regime of Moammar Gadhafi.

The company has insisted that none of the $56 million in payments were directed to Libya.

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